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Saudi Aramco: Public
Capturing Opportunities & Winning Business
with Saudi Aramco and its Suppliers©2017, Saudi Aramco
Saudi Aramco: Public
Key Points
• Immediate Opportunities for Materials
• Materials with no or few local suppliers
• Increasing capability – removing limitations
• Collaboration - Saudi Aramco and its supply chain will drive new business
• Doing Business - be competitive
• Over SAR 1 trillion in spend over the next 10 years will create opportunity
iktva is imperative for doing business with
Saudi Aramco
Competitive Cost
Quality
Schedule
Environment
Safety
Saudi Aramco: Public
Saudi Aramco 10-Year Demand Forecast
How to Win Business
IK Participation Limitations
Immediate Opportunities
Agenda
1
2
3
4
Saudi Aramco: Public
Saudi Aramco Suppliers Classification
Suppliers
Classification
Manufacturer
o An entity that owns and produces materials
Service Provider (Contractor)
o An entity that provides any type of service
(engineering, landscaping, construction, training ..)
Agent
o A representative of an entity (or more) that owns
and produces materials
Saudi Aramco: Public
SR 22.5 B Historical Spend Sample
Global Historical Spend Distribution
Mat. Spend with
OOK MFR Only
29%
Mat. Spend with
IK MFR Only
2%
Mat. Spend with
1-2 IK MFR
23%
Mat. Spend With
3+ IK MFR (OOK
spend)
32%
Mat. Spend With
3+ IK MFR (IK
spend)
14%
Note: Sample of historical spend: Average of 6 years
Areas of Immediate Opportunity:
Materials sourced OOK only
Materials with 1-2 IK MFRs
For further development:
Materials with 3+ IK MFRs but
limited in capacity and capability
Saudi Aramco: Public
Material Spend with No Local Manufacturers
Global Historical Spend Distribution
Areas of Immediate Opportunity:
Materials sourced OOK only
Mat. Spend with
OOK MFR Only
29%
Mat. Spend with
IK MFR Only
2%
Mat. Spend with
1-2 IK MFR
23%
Mat. Spend With
3+ IK MFR (OOK
spend)
32%
Mat. Spend With
3+ IK MFR (IK
spend)
14%
Note: Sample of historical Spend: Average of 6 years
Saudi Aramco: Public
SR 7 MM
SR 16 MM
SR 44 MM
SR 59 MM
SR 84 MM
SR 90 MM
SR 98 MM
SR 135 MM
SR 159 MM
SR 227 MM
SR 239 MM
SR 434 MM
SR 455 MM
SR 872 MM
SR 1,212 MM
SR 2,006 MM
Air Conditioning
Office Supplies
Safety & Security
Community
Gen Sup & Bldg.
Environmental
Communication
Industrial Services
Computers
Medical
Static
E&I
Rotating
Piping Sys.
Chemicals
Drilling
Materials Currently Sourced OOK Only –Drilling Equipment
Downhole Equipment
LINER HANGERS SR 364 MM
PACKERS SR 347 MM
INSTALLATION SERVICES SR 181 MM
VALVE: SUB-SURFACE SAFETY SR 80 MM
ISOLATION VALVES & ACCESSORIES SR 75 MM
NIPPLE: LANDING SR 33 MM
LATERALS & ACCESSORIES EQUIPMENT SR 19 MM
Downhole Equipment
55%
Csg Acc & Cement Eqp
11%
Adv Well Comp Eqpt
29%
Advanced Well Completion
EQUALIZER/ SCREENS ACCESS SR 270 MM
SMART, ACCESSORIES SR 140 MM
GAUGES SR 53 MM
EXPANDABLE, CASING & ACCESSORIES SR 41 MM
DOWNHOLE WET CONNECT SYSTEM SR 26 MM
CABLE, MONITORING SYSTEM, SR 24 MM
PDHMS, ACCESSORIES SR 13 MM
COUPLING PROTECTOR SR 8 MM
EXPANDABLE, SCREEN SR 7 MM
Note: Sample of historical spend: Average of 6 years
Saudi Aramco: PublicNote: Sample of historical spend: Average of 6 years
SR 7 MM
SR 16 MM
SR 44 MM
SR 59 MM
SR 84 MM
SR 90 MM
SR 98 MM
SR 135 MM
SR 159 MM
SR 227 MM
SR 239 MM
SR 434 MM
SR 455 MM
SR 872 MM
SR 1,212 MM
SR 2,006 MM
Air Conditioning
Office Supplies
Safety & Security
Community
Gen Sup & Bldg.
Environmental
Communication
Industrial Services
Computers
Medical
Static
E&I
Rotating
Piping Sys.
Chemicals
Drilling
Materials Currently Sourced OOK Only –Chemicals
Drllg Fluids-Mud29%
Drllg Chem-General 62%
Well Stimulant Agents 6%
General Drilling Chem.SALTS SR 426 MM
LUBRICANTS SR 111 MM
H2S SCAVENGER SR 98 MM
SHALE/BOREHOLE STABILIZER SR 50 MM
SPOTTING FLUID SR 22 MM
THINNER SR 16 MM
EMULSIFIERS & SURFACTANTS SR 9 MM
OXYGEN SCAVENGER SR 8 MM
DEFOAMER SR 6 MM
Saudi Aramco: PublicNote: Sample of historical spend: Average of 6 years
SR 7 MM
SR 16 MM
SR 44 MM
SR 59 MM
SR 84 MM
SR 90 MM
SR 98 MM
SR 135 MM
SR 159 MM
SR 227 MM
SR 239 MM
SR 434 MM
SR 455 MM
SR 872 MM
SR 1,212 MM
SR 2,006 MM
Air Conditioning
Office Supplies
Safety & Security
Community
Gen Sup & Bldg.
Environmental
Communication
Industrial Services
Computers
Medical
Static
E&I
Rotating
Piping Sys.
Chemicals
Drilling
Materials Currently Sourced OOK Only –Piping System
Valve-Ball15%
Valve-Butterfly
7%
Valve-Plug7%
Pipe, Metal16% Pipe
Fittings, CS13%
Pipe Fitting, CSCAP; PIPE; BW; ALLOY STEEL SR 23 MM
CAP; PIPE; CARBON STEEL; SR 23 MM
CAP; PIPE; SW OR THREADED, SR 14 MM
SPOOL: CLAD PIPE SPOOL SR 31 MM
TEE; PIPE, SPLIT TEE; HOT TAP SR 7 MM
TEE; PIPE; BW; CARBON STEEL SR 17 MM
Valve ButterflyVALVE; BUTTERFLY; HIGH PERFORMANCE
SR 42 MM
VALVE; BUTTERFLY; NPS 14 AND UP SR 9 MM
Saudi Aramco: PublicNote: Sample of historical spend: Average of 6 years
Materials Currently Sourced OOK Only –Rotating Equipment
CompressorsCOMPRESSOR; AIR; CENTRIFUGAL
SR 34 MM
COMPRESSOR; DRY-SCREW SR 7 MM
COMPRESSOR; RECIPROCATING
SR 29 MM
Pumps
PUMP; CENTRIFUGAL SR 11 MM
PUMP; RECIPROCATING SR 6 MM
PUMP; VACUUM; API 681 SR 7 MM
Spares, Gas Turbines
19%
PumpCentrifug.
6%
Comprsr. Recip.7%
Comprsr, Centrifug.
52%
Comprsr. Utility Air
11%
SR 7 MM
SR 16 MM
SR 44 MM
SR 59 MM
SR 84 MM
SR 90 MM
SR 98 MM
SR 135 MM
SR 159 MM
SR 227 MM
SR 239 MM
SR 434 MM
SR 455 MM
SR 872 MM
SR 1,212 MM
SR 2,006 MM
Air Conditioning
Office Supplies
Safety & Security
Community
Gen Sup & Bldg.
Environmental
Communication
Industrial Services
Computers
Medical
Static
E&I
Rotating
Piping Sys.
Chemicals
Drilling
Saudi Aramco: Public
SR 7 MM
SR 16 MM
SR 44 MM
SR 59 MM
SR 84 MM
SR 90 MM
SR 98 MM
SR 135 MM
SR 159 MM
SR 227 MM
SR 239 MM
SR 434 MM
SR 455 MM
SR 872 MM
SR 1,212 MM
SR 2,006 MM
Air Conditioning
Office Supplies
Safety & Security
Community
Gen Sup & Bldg.
Environmental
Communication
Industrial Services
Computers
Medical
Static
E&I
Rotating
Piping Sys.
Chemicals
Drilling
Note: Sample of historical spend: Average of 6 years
Materials Currently Sourced OOK Only –Electrical & Instrumentation
Cable, PowerSUBMARINE,69 KV-230 KV SR 65 MM
Valves Relief
DISC; RUPTURE ASSEMBLY SR 59 MM
SwitchgearBUS; ISOLATED PHASE BUS DUCT
SR 10 MM
SWITCHGEAR:SF6, 2 KV, SR 6 MM
SWITCHGEAR:SF6, 115KV SR 41 MM
Cable, Power
20%
Valves Relief 14%
Switchgear13%
Control Devices
5%
Flow Instrumentation
7%
UPS 8%
Control Panel, ESD
4%
Electrical Motors
4%
Switchgear, HV6%
Saudi Aramco: Public
Material Spend with 1-2 Local Manufacturers
Global Historical Spend Distribution
Mat. Spend with
OOK MFR Only
29%
Mat. Spend with
IK MFR Only
2%
Mat. Spend with
1-2 IK MFR
23%
Mat. Spend With
3+ IK MFR (OOK
spend)
32%
Mat. Spend With
3+ IK MFR (IK
spend)
14%
Note: Sample of historical spend: Average of 6 years
Areas of Immediate Opportunity:
Materials with 1-2 IK MFRs
Saudi Aramco: PublicNote: Sample of historical spend: Average of 6 years
Office Supplies
Air Conditioning
Industrial Services
Gen Sup & Bldg. Mat.
Computers
Static
Safety & Security Equip
Rotating
Environmental
E&I
Chemicals
Piping Sys.
Drilling
FloatEquipment
3%
TubingOCTG
3%
Whipstock3%
Valves3%
Bonnet3%
Centralizer4%
Spool Assy.10%
Tree13%
Casing OCTG49%
SR 2,317 MM
1-2 Local Manufacturer Historical Spend –Drilling Equipment
Saudi Aramco: PublicNote: Sample of historical spend: Average of 6 years
1-2 Local Manufacturer Historical Spend –Piping System
Pipe 47%
Valve: Ball 16%
Valve: Gate 11%
Flange 7%
Pipe & Fittings Nonmetallic 4%
Elbow 3%
Valve: Check 3%
Valve: Choke 3%
SPOOL 3%
SR 1,210 MM
Office Supplies
Air Conditioning
Industrial Services
Gen Sup & Bldg. Mat.
Computers
Static
Safety & Security Equip
Rotating
Environmental
E&I
Chemicals
Piping Sys.
Drilling
Saudi Aramco: PublicNote: Sample of historical spend: Average of 6 years
1-2 Local Manufacturer Historical Spend –Chemicals
Lost Circulation
9%
Mud Products 46%
Alkalinity Control
2% Catalyst7%
Cement & Additives
16%
Corrosion Inhibitors 1%
Fluid Loss Control
20%
SR 827 MM
Office Supplies
Air Conditioning
Industrial Services
Gen Sup & Bldg. Mat.
Computers
Static
Safety & Security Equip
Rotating
Environmental
E&I
Chemicals
Piping Sys.
Drilling
Saudi Aramco: Public
SR 362 MM
Office Supplies
Air Conditioning
Industrial Services
Gen Sup & Bldg. Mat.
Computers
Static
Safety & Security Equip
Rotating
Environmental
E&I
Chemicals
Piping Sys.
Drilling
Note: Sample of historical spend: Average of 6 years
1-2 Local Manufacturer Historical Spend –Electrical & Instrumentation Equipment
Solar Power Supply
20%
Cable Submarine
22%
Cable: Instrumentation
12%
Cable Bus 4%
Custody Sys.10%Generator: Diesel
7%
Motor3%
Transformer 2%
Wellhead ESD5%Transmitter
5%
Saudi Aramco: Public
Material spend with 3+ Local Manufacturers
Global Historical Spend Distribution
Mat. Spend with
OOK MFR Only
29%
Mat. Spend with
IK MFR Only
2%
Mat. Spend with
1-2 IK MFR
23%
Mat. Spend With
3+ IK MFR (OOK
spend)
32%
Mat. Spend With
3+ IK MFR (IK
spend)
14%
Note: Sample of historical spend: Average of 6 years
For further development:
Materials with 3+ IK MFRs but
limited in capacity and capability
Saudi Aramco: Public
Immediate Opportunities
IK Participation Limitations
How to Win Business
Saudi Aramco 10-Year Demand Forecast
Agenda
1
2
3
4
Saudi Aramco: Public
Material Limitations Definition
Limitations are specific restrictions that limits
the level of approval for a supplier against a
certain material.
The limitations are decided based upon the final
result of the technical evaluation of each facility.
Limitations could be on many aspects:
o Metallurgy
o Model type
o Size
o Thickness
o Engineering
Saudi Aramco: Public
Rotating Equipment
Manufacturer Name10 Years Forecast:
SR 8 B Initiative Lead:Local Business Development
Current Situation Future Situation (2021) Enablers
9COMs with limitations:-60000XXXXX: RE-ENGINEERED PUMP IMPELLER AND CASING:Approved for casing parts from bronze, grey cast iron, ductile cast iron, and stainless steel only.-600000XXXX: PUMP ; SUBMERSIBLE/31-SAMSS-10/ABOVE 75 KW, Not approved for fire water service pumps.
1. Different types of metallurgy: Low alloy steel, carbon steel, duplex stainless steel.2. Different applications.3. Spare parts manufacturing.
1. ES to work with supplier in developing capabilities to add 9COMs.2. Supplier must be willing to expand skillset, add 9COMs and ensure quality standards.3. Form a cooperative team between Saudi Aramco and the supplier to move forward.
Manufacturer Team Aramco Team Manufacturer Notes
Unit Representative Unit RepresentativeDiscussion points and suggestions
Rotating Equipment
Common Limitations
• Design capability
• Full machining capability
• Range of sizes
• Packaging
• Metallurgy
• Only assembly
• Lack of spare parts
manufacturing
• Limited applications
Sample Workbook
Saudi Aramco: Public
Static Equipment
Static Equipment
Common Limitations
• Thermal design
• Mechanical design
• Assembly & Welding
• Wall thickness
• Engineering design
• Fabrication only
• Size
• Metallurgy
• Pressure ratings
Manufacturer Name10 Years Forecast:
SR 87 B Initiative Lead:Local Business Development
Current Situation Future Situation (2021) Enablers
600000XXXX: TANK; SHOP FABRICATED.1) Only carbon steel2) Diameter up to 10 feet.3) Excluding dome roofs.4) Excluding external and internal floating roofs.600000XXXX: VESSEL; PRES.; MAX. WALL THK OF 19 MM. Tangent-to-Tangent length of pressure vessels is limited to 6 m maximum.
1. Different types of metallurgy.2. Flexible and dome roofs3. Various sizes and pressure
1. ES to work with supplier in developing capabilities to add 9COMs.2. Supplier must be willing to expand skillset, add 9COMs and ensure quality standards.3. Form a cooperative team between Saudi Aramco and the supplier to move forward.
Manufacturer Team Aramco Team Manufactrurer Notes
Unit Representative Unit RepresentativeDiscussion points and suggestions
Sample Workbook
Saudi Aramco: Public
Manufacturer Name10 Years Forecast:
SR 29 BInitiative
Lead:Local Business Development
Current Situation Future Situation (2021) Enablers
600000XXXX: TRANSMITTER; PRESSURE:limited to manufacture up to 4000 psi.600000XXXX: CONTROL VALVE FOR SEVERE SERVICE:limited to manufacture up to 24".600000XXXX: VALVE; GLOBE; CONTROL; INCLUDING ACTUATOR1. Only allowed to manufacture control valves up to Class 600# in accordance with ASME B16.342. Not allowed to supply control valves in fire-hazardous zone services as defined in SAES-B-XXXXor specified as "fire-safe".
1. Different types of metallurgy.2. Different sizes3. Different pressure rating4. Spare parts
1. ES to work with supplier in developing capabilities to add 9COMs.2. Supplier must be willing to expand skillset, add 9COMs and ensure quality standards.3. Form a cooperative team between Saudi Aramco and the supplier to move forward.
Manufacturer Team Aramco Team Manufactrurer Notes
Unit Representative Unit RepresentativeDiscussion points and suggestions
Electrical & Instrumentation Equipment
Electrical &
Instrumentation
Common Limitations
• Size
• Design
• Type
• Pressure rating
• Assembly only
• Specific model
• Power limitations
• Spare parts
Sample Workbook
Saudi Aramco: Public
Pipe & Pipe Fittings Equipment
Manufacturer Name10 Years Forecast:
SR 73 BInitiative
Lead:Local Business Development
Current Situation Future Situation (2021) Enablers
600000XXXX: ELBOW; PIPE; BW; CS; 02-SAMSS-005:Size: 1" to 12", Thickness: For 10" and below, maximum is Sch-XS, with the following exception: 4": up Sch-120 (11.13mm) & 6": up to 12.7 mm, For 12", maximum is sch-80. Radius: long radius only. Material: low alloy steel only
600000XXXX: PIPE; STEEL API 5L; SAW STRAIGHT; SOUR:16 inch to 62 inch OD size and maximum of 1 inch wall thickness.
1. Different types of metallurgy.2. Cladding3. Different sizes4. Coating
1. ES to work with supplier in developing capabilities to add 9COMs.2. Supplier must be willing to expand skillset, add 9COMs and ensure quality standards.3. Form a cooperative team between Saudi Aramco and the supplier to move forward.
Manufacturer Team Aramco Team Manufactrurer Notes
Unit Representative Unit RepresentativeDiscussion points and suggestions
Pipe & Fittings
Common Limitations
• Length
• Diameter size
• Wall thickness
• Metallurgy
• Welding types
• Welding material
• Coating
Sample Workbook
Saudi Aramco: Public
Immediate Opportunities
IK Participation Limitations
How to Win Business
Saudi Aramco 10-Year Demand Forecast
Agenda
1
2
3
4
Saudi Aramco: Public
Doing Business with Suppliers
iktva is imperative for doing business with Saudi Aramco
Competitive Cost
Quality
Schedule
Environment
Safety
Saudi Aramco: Public
We Recently Determined a Number of Reasons Why Several IK Bidders Lost Opportunities
Significant Pricing Difference with OOK MFRs
o Raw material
o Specialist Labor
o Order quantities were uneconomical
Tier 1 bidding practices
o Bid Invitation
o Bundling of orders
o Lack of Feedback
o No Price Negotiation
Key Findings
40% 38%36% 35% 34%
25% 24%
20%18%
14%
Average Price Difference 2016*
*Sample size 60 Tier-1 RFQs
Saudi Aramco: Public
Doing Business with Suppliers
iktva is imperative for doing business with Saudi Aramco
Competitive Cost
Quality
Schedule
Environment
Safety
Saudi Aramco: Public
Previous quality major issues discovered during manufacturing phases:
o Deviations from Technical Requirements and PO Requirements.
o Workmanship Issues.
o Design Deficiency and Integrity.
o Falsification of Records.
o Substandard Material Use.
o Improper Preservation.
Deviations from Technical Requirements.
Workmanship Issues
Design Deficiency and Integrity.
Falsification of Records.
Substandard Material Use
Improper Preservation
Quality Lessons Learned
Saudi Aramco: Public
Quality - Deviations from Technical and PO Requirements
Workmanship Issues
Design Deficiency and Integrity
Falsification of Records.
Substandard Material Use
Improper Preservation
CASE:Plate HIC (Hydrogen-Induced Cracking) not conductedon the thinnest plate when two thickness platesproduced from the same heat which is considered adeviation to Saudi Aramco technical requirements 01-SAMSS-016.
Deviations from Technical Requirements
Saudi Aramco: Public
Quality - Workmanship issues
Deviations from Technical Requirements
Workmanship Issues
Design Deficiency and Integrity
Falsification of Records.
Substandard Material Use
Improper Preservation
CASE:Manufacturer have shipped several valves with majorquality defects, such as cracks, pin holes and paintissues. All these defects can be easily discoveredthrough visual inspection conducted by qualifiedinspectors.
Saudi Aramco: Public
Quality - Design Deficiency & Integrity
Deviations from Technical Requirements
Workmanship Issues
Design Deficiency and Integrity
Falsification of Records.
Substandard Material Use
Improper Preservation
CASE:The vendor has supplied Saudi Aramco with 2" diameterstainless steel check valves that do not have enoughclearance between the back side of the flange and thehinged section of the valve's body. This will not allowthe installation/insertion of a standard nut of thecorresponding stud bolt.
Saudi Aramco: Public
Quality - Falsification of Records
Deviations from Technical Requirements
Workmanship Issues
Design Deficiency and Integrity
Falsification of Records
Substandard Material Use
CASE:The vendor has falsified the WPS/PQR (WeldingQualification Procedures) to grant Saudi Aramcoapproval without conducting actual tests.
Improper Preservation
Saudi Aramco: Public
Quality - Substandard material use
Deviations from Technical Requirements
Workmanship Issues
Design Deficiency and Integrity
Falsification of Records
Substandard Material Use
Improper Preservation
CASE:Several cases reported of utilization substandardmaterial that resulted in material failures and fractures.
Saudi Aramco: Public
Quality - Improper Preservation
Deviations from Technical Requirements
Workmanship Issues
Design Deficiency and Integrity
Falsification of Records
Substandard Material Use
Improper Preservation
CASE:During receiving inspection, it was found that severalboiler parts were severally corroded as they wereshipped without compliance with preservationrequirements.
Saudi Aramco: Public
How to Win Business with Saudi Aramco and it’s Tier 1 Suppliers Summary
o Start working on your IKTVA baseline and 5-year IKTVA action plan.
o Develop training for cost estimators and engineers on how to deliver globally competitive value.
o Remove/improve limitations on your currently approved materials.
o Consider new sourcing strategies ( buying consortium for key materials that can be bought in bulk).
o Minimize rework due to quality issues.
o Work on improving production scheduling.
o Safety Zero Tolerance Policy - violations will result in banning individuals/vehicles/delivery trucks from entering Saudi Aramco facilities.
o Adhere to the Saudi Aramco Code of Conduct.
IKTVA Program
o Saudi Aramco is committed to driving local industrial development with the IKTVA program
o Tier 1 companies have agreed to IKTVAtargets over the next 5 years that will drive their procurement favoring IK suppliers
Saudi Aramco
Tier 2 Tier 1
Saudi Aramco: Public
Immediate Opportunities
IK Participation Limitations
How to Win Business
Saudi Aramco 10-Year Demand Forecast
Agenda
1
2
3
4
Saudi Aramco: Public
Capital Program 10-Year Forecast
Disclaimer:
The next slides contain forward-looking statements regarding future events based on current expectations,estimates, forecasts, and projections. The data is subject to updating, revision, further verification andamendment without notice. No reliance may be placed for any purpose on the information or opinionscontained in this presentation or any other document or statement, or on the completeness, accuracy orfairness of such information or opinions therein. No representation or warranty, expressed or implied, ismade or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy orcompleteness or fairness of the information or opinions contained in this presentation, and no responsibilityor liability is accepted by any of them for such information or opinions or for any errors, omissions,misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referredto in this presentation.
Saudi Aramco: Public
Capital Program 10-Year Forecast = SR140 Billion / Year
10-Year Capital Program Forecast
Unconventional Resources
8%
Other4%
Pipeline3%
Infrastructure7%
Process Facilities12%
Maintain Potential14%
Drilling 52%
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
Saudi Aramco: Public
Drilling Materials Spend Forecast 2017-2026
Trees 13,900 units
Hanger assemblies,33,000 units
Cement6.8 million tons
Mud Products (liquid)
636 million gallons
Casing heads 14,000 units
ICDS & ICD-screens
1.2 million units
Quantity Examples Percentage of Total Material Spend
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
Saudi Aramco: Public
Rigs Oper. and Well Services Forecast (2017 – 2026) Total = SR 439 B
Rig Drilling Ops Services = SR 197 B
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
112
81
61
5
31
Oil -Onshore
Gas -Onshore
Oil -Offshore
Gas -Offshore
UR
Directional Drilling
27%
Technical Services
22%Operations & Completion Services11%
Roads & Locations
5%
Logging9%
Monitoring & Testing
9%
Drilling Equipment Rental 9%
Casing / Tubing &
Handling, 4%
Cementing / Pumping
Services, 4%
Perforating
Saudi Aramco: Public
SR4B
SR8B
SR37B
SR40B
SR61B
SR81B
SR94B
SR95B
SR151B
Renewables
Power
Oil Facilities
Pipeline
Other
Infrastructure
Refinery & Petrochem
Gas Facilities
Maintain Potential
Surface Facilities Forecast (2017 – 2026)
10-Year Capital Program Forecast Surface Facilities (SR~500 Billion)
Unconventional Resources
8%
Other4%
Pipeline3%
Infrastructure7%
Process Facilities12%
Maintain Potential14%
Drilling52%
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
Saudi Aramco: Public
Examples of Surface Facilities Materials Forecast (2017-2026)
Surface Facilities MaterialsSR196 Billion
Surface Facilities Construction Services
SR240 Billion
BOILER PLANT EQUIP - 160 UNITS
PUMPS CS - 3,500 UNITS
LOW VOLTAGE CABLING - 56,000 KM
STORAGE TANKS - 1,000 UNITS
AIR COOLERS - 500 UNITS
COMPRESSORS - 500 UNITS
STAINLESS STEEL PIPING (SS314/316) - 137,000…
PROCESS VESSELS SS - 620 UNITS
CONCRETE - 24 MILLION M3
STRUCTURAL STEEL - 650,000 TONS
CONTROL VALVES - 90,000 UNITS
FIELD INSTR, ANALYZERS, GAGES - 70,000 UNITS
CS FITTINGS & VALVES - 19 MILLION UNITS
SS FITTINGS & VALVES - 6 MILLION UNITS
HEAT EXCHANGERS - 3,500 UNITS
CARBON STEEL PIPING - 23 MILLION TONS
PROCESS VESSELS CS - 6,000 UNITS
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
Saudi Aramco: Public
BOILER PLANT EQUIP - 160 UNITS
PUMPS CS - 3,500 UNITS
LOW VOLTAGE CABLING - 56,000 KM
STORAGE TANKS - 1,000 UNITS
AIR COOLERS - 500 UNITS
COMPRESSORS - 500 UNITS
STAINLESS STEEL PIPING (SS314/316) - 137,000…
PROCESS VESSELS SS - 620 UNITS
CONCRETE - 24 MILLION M3
STRUCTURAL STEEL - 650,000 TONS
CONTROL VALVES - 90,000 UNITS
FIELD INSTR, ANALYZERS, GAGES - 70,000 UNITS
CS FITTINGS & VALVES - 19 MILLION UNITS
SS FITTINGS & VALVES - 6 MILLION UNITS
HEAT EXCHANGERS - 3,500 UNITS
CARBON STEEL PIPING - 23 MILLION TONS
PROCESS VESSELS CS - 6,000 UNITS
Examples of Surface Facilities Materials Forecast (2017-2026) - CS Fittings & Valves
Ball valves0.36 MM valves
2%
Check Valve0.17 MM valves, 1%
Gate Valves2.0 MM valves, 10%Pipe Fitting, CS, 16.6
MM fittings, 87%
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
Saudi Aramco: Public
Examples of Surface Facilities Materials Forecast (2017-2026) - Ball Valves
0
20,000
40,000
60,000
80,000
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Ball Valves – All Types
CS SS Non-Metallic
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2017201820192020202120222023202420252026
150 300 600 900 1500
0
10000
20000
30000
40000
50000
60000
70000
2017201820192020202120222023202420252026
<4" 4" - 24" > 24"
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
BOILER PLANT EQUIP - 160 UNITS
PUMPS CS - 3,500 UNITS
LOW VOLTAGE CABLING - 56,000 KM
STORAGE TANKS - 1,000 UNITS
AIR COOLERS - 500 UNITS
COMPRESSORS - 500 UNITS
STAINLESS STEEL PIPING (SS314/316) - 137,000…
PROCESS VESSELS SS - 620 UNITS
CONCRETE - 24 MILLION M3
STRUCTURAL STEEL - 650,000 TONS
CONTROL VALVES - 90,000 UNITS
FIELD INSTR, ANALYZERS, GAGES - 70,000 UNITS
CS FITTINGS & VALVES - 19 MILLION UNITS
SS FITTINGS & VALVES - 6 MILLION UNITS
HEAT EXCHANGERS - 3,500 UNITS
CARBON STEEL PIPING - 23 MILLION TONS
PROCESS VESSELS CS - 6,000 UNITS
Saudi Aramco: Public
Examples Required Workforce Skills (2017-2026)
DRILLING AVERAGE MANPOWER/YEAR*
SKILL LEVEL EXAMPLES
632
992
1058
1080
1220
1231
1258
1328
1372
1751
2093
2169
2249
2508
2701
3133
3337
3784
4050
4066
4181
4632
8663
9203
SuperintendentOffshore Supply Vesseles Seamen
Derrick manMud logger
Mobilization/ demobilizationHeavy Equipment operators
Rig techniciansWelder
Geophysicist/GeologistLogging
ElectricianFracking / cement technician
DrillerCrane Operator
Project managementMechanicLogistics
Roustabout & FloormenTruck Driver
Operators (Wireline, Rig & Pump)Admin*
Construction crewRough necks / rig hand
Engineers**
Total MP
Peak =
69, 000
Direct jobs
** Inclusive of all disciplines
1,000
1,100
2,100
2,900
3,500
4,300
4,400
5,800
5,900
8,800
9,100
9,800
11,500
11,800
12,500
19,100
29,200
42,000
Insulator
Instrument Fitter /technician
Cement Finisher / Mason
Millwright
Iron Worker - Rebar
Painter
Carpenter
Rigger
Vehicle Driver (Light-Heavy)
Electrician (line, wiring, cable …
Craft Helper
Equipment Operator (Light-Heavy)
Professional
Foreman
QA/ QC
Welder
Laborer
Pipefitter
Total MP
Peak =
270,000
Direct Jobs
PROCESS FACILITIES AVERAGE MANPOWER/YEAR*
SKILL LEVEL EXAMPLES
* This demand is for industrial projects only. It does not include
Commercial, Residential, or Infrastructure Projects.
Disclaimer:This slide contains forward-looking statements regarding future events based on current expectations, estimates, forecasts, and projections. The slide is subject to updating, revision, further verification and amendment without notice. No reliance may be placed for any purpose on the information or opinions contained in this presentation or any other document or statement, or on thecompleteness, accuracy or fairness of such information or opinions therein. No representation or warranty, express or implied, is made or given by or on behalf of Saudi Aramco or its employees, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
Saudi Aramco: Public
Key Points
• Immediate opportunities for materials
• Materials with no or few local suppliers
• Increasing capability – removing limitations
• Collaboration - Saudi Aramco and its supply chain will drive new business
• Doing Business - be competitive
• Over SR 1 trillion in spend over the next 10 years = opportunity
iktva is imperative for doing business with
Saudi Aramco
Competitive Cost
Quality
Schedule
Environment
Safety
Saudi Aramco: Public
Saudi Aramco Contact details
Limitations program, materials or capacity expansion for local facilities
Supplier Solution Center UnitOmar KatheerTel.: [email protected]
New local businesses, market information
Local Business Development Unit
Imran HaririTel.: [email protected]
General Inquiries Supplier Help DeskTel.: [email protected]
Saudi Aramco: Public
Thank you